Retention Red Flag Policy

Retention Red Flag Policy

An eligible Retention sales call is when the customer indicates agreement to the sales activity and has a clear understanding of the activities being undertaken on their warranty. It is the responsibility of Retention Sales associates to use all available and ethical means to convince customers who would otherwise cancel their contract and no longer be a customer to remain active and express the intention to continue paying indefinitely for one of our plans. 

Commissionable sales activity is if an associate’s efforts lead the customer to continue with the warranty. It is necessary to confirm the sales activity is applicable to the warranty as outlined in this document.

Defined Activities

Save

  1. A call is considered a “save” if an Associate’s efforts lead the customer into keeping a home service plan active with us. 
  2. All saves must be confirmed with the customer during the call wrap up.  Use of the sales scripting verbatim is mandatory. The red flag statement that made this an eligible save call must be included in the associates save notation.

Cancellation

  1. Requests to cancel must be processed immediately upon request if they are authorized to take action on the warranty. Sales efforts must be enacted on interactions involving a request for cancellation or a clear implication of cancellation. Failure to process cancellations as requested will be considered an attempt to avoid the cancellation. Such activity will result in disciplinary action; up to and including termination.

Enrollment

  1. Requests to enroll in one of our warranty plans must be processed immediately upon request. It is the responsibility of the associate to determine the method in which the caller became aware of our plan to ensure adherence to the selection of client/cell codes process.
Sales verification is completed on TS&R sales. Any sale deemed invalid will not be eligible for commission payout. Failure to use the sales scripting verbatim will deem a sale invalid and subject to removal from commission payouts. Invalid sales activity will incur disciplinary action; up to and including termination. 
 
In all cases, you must be reasonable with your judgment. Consent and a full understanding by the customer of the sales activity taking place is necessary. Sales scripting MUST be used on all sales calls and MUST be read verbatim. If you are unsure whether the activity is a defined sales activity, eligible or ineligible for commission or need clarification on proper dispositioning, please ask a Supervisor or Quality Assurance Specialist.

Additional Guidelines and Notes

Scenario

Actions

Unauthorized Users: Unable to make decisions on the warranty regarding staying active or cancelling.

If a client or individual not named on the warranty calls on behalf of a customer wishing to cancel, we will not take cancellation instructions from them. The authorized has to either come to the phone or call us back.

Sears Customers: If the caller is not listed on the warranty but indicates that they were the person that enrolled, follow the Sears Name Change Procedure by verifying the billing method on file (last 4 digits of the Credit Card or Checking Account) and the amount drafted. Once the information is verified, correct the name on the account. The caller is now authorized to make decisions on the account (update the account, make claims decisions, cancel, etc.).

The customer calls to speak to another representative.

The receiving agent is to handle the customer’s request directly even if retention efforts fail and cancellation occurs. The associate on the current interaction is responsible to complete the customer’s request.

The Void Entered in Error Cancellation Reasons is used when a warranty is enrolled in error. This cancel reason can also be used to cancel the account in the following situations.

  1. Customer calls to request non-renewal but the account has already renewed and is in an inactive status.
  1. Cancel requests received on the same day as the enrollment with two exceptions:
    1. If the customer’s enrollment was entered close to the end of the business day and there was no time left for the customer to call back in to cancel (i.e., after 8:30PM EST).
    2. For Sears, if the enrollment was entered late Friday evening (i.e., after 8:30PM EST), and the cancel request is received on Monday.

Failure to Cancel: A caller indicates they previously requested to be canceled or to be set up for non-renewal or did not agree to the save/renewal.

The associate handling the current call should cancel the account and notify their supervisor of the occurrence to review and remove the cancellation. A save attempt is to be made on this call.

If the customer releases the call prior to completing the sales verification scripting.

Associates are to immediately call the customer back to complete the transaction and gain consent from the customer to the sales activity.

  1. If the customer fails to answer, the associate must note the warranty indicating the outbound call was made but there was no response.
    1. In the case of a save, the warranty can be dispositioned as a save.
    2. In the case of a cancelation, the warranty must be canceled.

Canceling as a Duplicate Warranty

Associates must completely review and probe to designate a warranty as a duplicate enrollment. It is the associate’s responsibility to handle these situations thoroughly to maintain adherence to the sales activity process.

  1. A warranty is considered a duplicate when both warranties offer the same coverage.
    1. If a customer has a Sears MPA, it is required to probe to determine what items are covered under their MPA.
    2. If the MPA covers ALL of the same items as our warranty, it is considered a duplicate.
    3. If the MPA does NOT cover all of the same items as our warranty, it is not considered a duplicate.
      1. Example: A Sears MPA that covers only the washer and dryer is NOT a duplicate to the SHW. Retention efforts must take place to retain the customer in the SHW and not be handled as a duplicate.

If a customer calls in and requests cancellation with you and your retention efforts fail, you are to process the cancellation. All activities which occurred during your call interaction with the customer are final. If you fail to retain the customer during your interaction, you are no longer eligible for sales credit.

Sales Confirmation Script

“Thank you <Customer Name>! Do you have nay other questions for me today?”

(If no other questions)

“Thank you <Customer Name>! Just to confirm, we will be keeping your <Product Name> Warranty active. <Monthly/Annually/3 Installments> billing will continue through your <Credit Card/Mortgage/Bank Account> at the rate of <Amount>. Is that ok?”

(Wait for a response)

If there are further questions – Address questions and repeat sale validation scripting.

“Thank you <Customer Name>! Just to confirm, we will be keeping your <Product Name> Warranty active. <Monthly/Annually/3 Installments> billing will continue through your <Credit Card/Mortgage/Bank Account> at the rate of <Amount>. Is that ok?”

(Wait for response)

If no further questions – Brand and close call.

“Thank you for calling Membership Service. Have a great day”

TS&R sales activity is subject to the sales verification process.
  1. Any sale deemed invalid will not be eligible for commission payout.
  2. Failure to use the sales scripting verbatim will deem a sale invalid and removed from commission payouts. 
  3. Requests to cancel must be processed immediately upon request.
  4. Failure to process cancellations as requested will be considered an attempt to avoid the cancellation.
Invalid sales activity and/or failure to process a requested cancellation will incur disciplinary action; up to and including termination.

In all cases, you must be reasonable with your judgment. Consent and a full understanding by the customer of the sales activity taking place are necessary.  

Sales scripting MUST be used on all sales calls and MUST be read verbatim. It is your responsibility to make sure that each warranty is accurately documented, and processes are followed for all interactions.

If you are unsure whether the activity is a defined sales activity, eligible or ineligible for a commission or need clarification on proper dispositioning, please ask a Supervisor or Quality Assurance Specialist.  

Retention Red Flag Policy Job Aid

The attached job aid is a guide to identify eligible and ineligible save calls per red flag statements (cancelation requests or implications to cancel) and/or actions.

This job aid is not all inclusive. You must be reasonable with your judgement. If you are unsure whether the call is eligible or ineligible, please ask a Supervisor or Quality Assurance Specialist. 
View attachment at bottom of page.

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